The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-05-18
GOULD AND THE PACIFIC.
THE IMPUTATION OF XNAvERY
IRATELY DENIED.

The Trust Bonds Not Made the Shuttle
cock of Dishonorable Jugglery With
Mr.. Sage-Broker Ponder Ayers
That Oakes Ames Died of Broken
Heart-Jim Blaine's Floundering in
the Puddle.
New YORK, May 1.-THE continuation
of the investigation before the Pacific Rail
way Commission this morning found the
well-known broker, John Ponder, on the
stand He went over the old story of the
Credit Mobilier, in which the names of "Jim''
Fiske, Jay Gould, Oalses Ames and Oliver
Ames, John Alley and others figured promi-
nently He took occasion to vindicate
Oalses Ames, saying that he was an honor
able man and was killed by the infamous
stories told about him. He attempted to
show the connection of Mr.. Blaine with the
Credit Mobilier. He said that when ''Tom''
Scott was elected President of the Union
Pacific Mr. Scott told the witness he had
eighty-two bonds which belonged to Mr..
Blaine which the Union Pacific would have
to pay. The stock was shown to the witness.
JAY GOULD ON THE STAND.
connection with the Union Pacific was in
1873. He bought largely of the stock at IS
and below, but 1t went down TO 10. He
found the road had an immense floating in
debtedness and went to work with Sidney
Dillon and Oliver Ames to fund il, and as
they improved the property the stock went
up. 81 deny,n said Mr. Gould, 'that had
any connection with the Union Pacific be-
fore 1873 / never took any interest in the
De- Go, aud
of the proposed consolidation with the Union
Pacific as early as 1875. There might have
been something in the press about it, but
am not responsible for what is in the papers.
| don't remember any action looking to
unity Of interest between the Kansas Pacific
and Colorado Central at that time"
1855 POOL AGREEMENT
The witness recalled the pool agreement of
1878 and said he signed for over three mil
lion securities. 1t was soon demonstrated
that the pool agreement would not carry
and a consolidated mortgage was determined
upon. The witness did not remember who
managed the pool. After we had scooped
in all the securities" said the witness, "and
the consolidated mortgage had been exc
cuted stock was issued to the holders of pool
securities"
Mr.. Gould here presented a statement of
his dealings in Kansas Pacific. The witness
made large sale or Union Pacific stock to
Cammack & Keene in 1879 On Jan. l, 1879,
he owned II, 900 shares of stock, and ON Jan,
"A, 1880, he was clear on the books of the
Union Pacific.
CONSOLIDATION ASSURED.
Mr. Gould, continuing, said: "The consol-
idation was an assured fact Jan Is, $780, for
signed the paper on that day, and / held a
controlling interest in the Kansas Pacific.
1t was desirable to effect the consolidation
to put in the Denver Pacific stock, of which
held 81 900, 900 worth, which had bought
at 10c. As trustee held 29,9SS shares, and
told Mr.. Holmes if he could get an order
of the court releasing it we would put it for
more than it was worth, that is at $500, 600
I remember this, as / sold $1,000, 900
worth at 10c., and shortly after bought it
back at par. The trustees would have got
nothing If this stock had not been released,
for the bonds would have been foreclosed
and the stock could not have gone into the
consolidation. The parties having charge of
the consolidation agreed to give $500, 900 for
this trust stock, and but for this arrange
ment nothing could have been done toward
paying off the mortgage"
the day and the investigation was adjourned
until tomorrow.
In answer to Commissioner Anderson's
questions regarding the handling of Denver
Pacific stock in trust, MIR. Gould replied
vigorously and gesticulated Violently. He
seemed greatly incensed at the imputation
of dishonorable deal between Mr.. Sage
and himself ia reference to this trust.